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File #: 19-0046    Version: Name: 2/4/19 Cost of Service Peer Review and Alternatives Stantec Amendment
Type: Resolution Status: Passed
File created: 2/4/2019 In control: City Council
On agenda: 2/4/2019 Final action: 2/4/2019
Enactment date: 2/4/2019 Enactment #: R-19-053
Title: Resolution to Approve Amendment No. 1 to the Professional Services Agreement with Stantec Consulting Services for Cost of Services for Water and Wastewater and to Appropriate Funds from the Water Supply System ($27,495.00) (8 Votes Required)
Attachments: 1. AlternativesResolution.pdf, 2. Stantec Amendment 1.pdf
Title
Resolution to Approve Amendment No. 1 to the Professional Services Agreement with Stantec Consulting Services for Cost of Services for Water and Wastewater and to Appropriate Funds from the Water Supply System ($27,495.00) (8 Votes Required)
Memorandum
On March 20, 2017, City Council awarded Stantec Consulting Services (Stantec) a Professional Services Agreement to conduct a cost of service study including rate design, public evaluation, and evaluation and recommendations. Among the deliverables from this agreement, Stantec's proposed rate design was enacted on June 18, 2018.

Subsequent to the rate implementation, City Council approved "Resolution Directing the City Administrator to Develop and Present to Council by March 31, 2019 a List of Feasible Alternatives to Revise the Recently-Adopted Water Rate Restructuring Ordinance to Mitigate the Adverse Impacts of the Ordinance of Single-Family Residential Customers" (R-18-499). To implement this Council directive, Stantec will be transferring data to Arcadis of Michigan LLC for the purposes of rate design review and presentation of alternatives including advantages and disadvantages of each. This scope entails data transfer from Stantec's study and adjustment of the cost-of-service and rate structure models to model feasible alternatives for residential water rate design impacts.

As directed by Council, Stantec/Arcadis/City Staff will generate a report expected to include pros/cons of lawful and feasible alternatives. Such alternatives could include things like eliminating the 4th Tier in single-family residential, adopting volume-based pricing tiers in the commercial customer class and establishing potential other customer classes. Any such alternatives presented will be revenue neutral to the City and will not adversely affect the City's ability to re-invest in our aging water utility infrastructure

Fiscal/Budget Impact: No funds were budgeted for further study related to the Cost of Service S...

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